Funding crisis for public hospitals: AMA

Australia's already over-burdened public hospitals are facing an imminent funding crisis, doctors warn, as debate continues over increasing the GST.

"The states and territories are facing a public hospital funding `black hole' from 2017 when growth in federal funding slows to a trickle," said AMA president Professor Brian Owler.

"If we want people living their full life expectancy, if we want to see people living longer, being healthier out there in the community, we have to resource our healthcare system."

The AMA's latest public hospitals report has found that overall, performances were "virtually stagnant and even declining in key areas" despite improvements in previous years.

While increasing the GST and Medicare levy have recently been debated by politicians across the country, Prof Owler said it was not up to the AMA to say which was the best funding option.

He said whatever revenue was raised, needed to be directed specifically to health.

"We don't want to see it siphoned off so it can fund personal income tax cuts as the treasurer recently suggested."

The report found only 68 per cent of emergency department patients classified as urgent were seen within the recommended 30 minutes, while bed number ratios had deteriorated.

Elective surgery waiting times and treatment targets are largely unchanged.

From July 2017, growth in commonwealth funding will be restricted to indexation using the Consumer Price Index (CPI) and population growth.

"Treasury advised the Senate Economics Committee that this change will reduce commonwealth public hospital funding by $57 billion over the period, 2017-18 to 2024-25," Prof Owler said.

"As a result, hospitals will have insufficient funding to meet the increasing demand for services."

He called on the federal government, with its new prime minister and treasurer, to make the necessary changes in the next budget, due in May.

"I've got to say it is not good enough for the government to throw their hands up in the air as Joe Hockey did in the budget night on 2014 and say it is all the states' responsibilities."

Opposition health spokeswoman Catherine King said the government's decision to walk away from Labor's funding agreement with the states and territories would lead to further increases in emergency department wait times and big increases in elective surgery wait times.